Skip to main content
7:00 pm
earnings starts next week. there's always a bull market somewhere and i promise to find it for you right here at "mad money." i'm jim cramer. see you tomorrow. -- i will see you on monday. good evening, everyone. i'm larry kudlow.
7:01 pm
this is "the kudlow report." so washington is gearing up for a nasty, brutish and ugly fight over raising the nation's debt limit. already republicans are talking about a government shutdown. and newly toughened john boehner is going to lead the spending cut charge. all right. next up, harsh attacks on former vice president al gore over his decision to sell current tv to al jazeera, which our special guest tonight calls terrorism tv. and a threat to national security. remember, they were first known as the mouthpiece for osama bin laden. then in hollywood, big-time stars are rallying around the new film "promised land" which opens this evening. it's a movie with no evidence whatsoever. it demonizes fracking and the gas industry. when will hollywood stop killing jobs? "the kudlow report" begins right now.
7:02 pm
first up, cut the spending. or face a government shut tdown. by all accounts this debt ceiling battle is going to be an ugly one. and after his brush with the conservative revolt earlier this week, do not expect house speaker john boehner to be in the mood to back down. so let's talk. here now is democratic strategist jimmy williams, cnbc contributor feagin and an editor-in-chief, matt welsh. what do you think of this, spend or shutdown? >> it's a little too late for john boehner to be having a conversion process to cutting the size of government. it's a guy right before the 2010 elections what part of government would you cut? you got me. he's never been a principled government cutter like most republicans in the national stage of the last generation to
7:03 pm
their discredit. so he's getting a lot of heat. definitely from the grass roots but he doesn't have a list of things to cut yet. you have two months until this debt ceiling fight. to actually cut something. >> he is is going to run through the budget process. so really paul ryan is going to be back in the driver's seat. sarah, after the horrible tax argument which republicans mostly lost, maybe not as bad as it could have been, has the republican party had a burning bush experience now regarding spending and debt? >> well, i think -- look, i take a different view on boehner. he had a tough hand, he played it best he could. but now, republicans are in the driver's seat. and on this debt limit, there is no reason for them to not fight until the very last day to get at least a dollar of spending cuts for every dollar of debt ceiling increase. >> that's the boehner rule. >> that's the boehner rule. he has been very consistent that
7:04 pm
he's going to stand by that rule. >> jimmy williams, the democrats don't want to cut anything. they'll oppose the sequester spending limits and they wouldn't even have a measly cost of living adjustment. so sarah may be right on this. the republicans are in the driver's seat. >> listen, i think both sides are in the driver's seat. the question is which one is going to blink first? sarah said something interesting, boehner is in it until the last day. what happens on the last day? i will be very interested if whether or not the speaker, but more importantly mitch mcconnell actually comes in and swoops in and does exactly what he did last time which is broker a deal with the white house. >> doing harry reid's job for him. >> not that he's doing harry reid's job for him. >> yes, it is. >> you can look at it that way. >> he's been doing reid's job. >> i don't. i look at mcconnell being the minority leader and as he a hell of a lot of power. so mitch mcconnell holds a lot of cards in this game. >> he does, but the difference
7:05 pm
is, jimmy, you know, here we were having a debate about whether we were going to make taxes go up for everybody or just some people. now we're having a debate over spending and mitch mcconnell heads into potentially a primary fight of his own in this election cycle. he has no interest in seeing the president raise the debt limit without getting some spending cuts. >> but again, where are the spending cuts? where are the proposals to cut anything? >> yeah. >> you kind of need those. you need a politics that builds up to that for the previous few years. >> would you be horrified if they took money out of all 20 -- i'm going to say there are 20 federal cabinet agencies, i don't know how many there are. there are so many lower agencies. would you be shocked, do you think the american public really cares if we start snipping things from agriculture, from the labor department? >> no, they don't. >> or how many people who work in the agriculture department. they would be horrified. >> let's say we abolished the commerce department. do you think america cares? >> no. americans say they want to reduce the size of government.
7:06 pm
what they don't want reduced necessarily are their social security. their size of the government. but they don't -- they don't see. i think they're right to a large degree. they don't see the department of labor is there -- you know, cutting them checks. >> what does that do for them? >> so you can make politics for that, but it's up to republicans to actually do that. so they have got two months. i wish they had been building up for this for 20 years. but they haven't. >> this is paul ryan's job. >> yes. >> this is paul ryan's job. >> and boehner's job. >> more than they did in the campaign. ryan didn't have time to do this in the campaign. medicare, let me go there. medicare, very complex. ryan has to sell people i think on what matt just said. there's so much in the federal government that just goes. >> two schools of thought. you put out a list and you get whacked for it for two years and campaign ads run it against you. i think if you want to solve this and you want to win this debt limit fight, you've got to put the list out there. but you have got to own it and
7:07 pm
communicate in a way that people understand. they will go along with republicans on this. americans fundamentally understand that these entitlement reforms must change for them to be saved. >> also, i think the democrats are in trouble because the democrats really haven't made their own budget. the senate democrats since probably just after world war ii. so you can't cut a document that you don't create. >> well, listen -- >> i think that's a problem over there. >> you and i have had this discussion before. i'll put out the numbers again. in '99, '05, '07, the republican held congress didn't put out a budget either. >> really? i don't remember that. >> you can look it up. i will forward the document to you so everybody can see that for four years -- >> that doesn't excuse the last three years. >> not at all. i'm not making excuses for the democrats not putting out a budget, but it's irrelevant. >> we'll get a big shot expert. stay right where you are. you have much more work to do for the whole show. let's find out what the real
7:08 pm
republican strategy is and how far they're prepared to go. here is our friend, house gop deputy whip peter roskum from illinois. how far are you willing to go to keep the republican promise? >> look, what we have to recognize is that john boehner looked into the eyes of a president who couldn't. a president who couldn't put the big deal together. couldn't challenge his party and couldn't bring it home which is why we are where we are. let's also remember that the president got his revenue. so the entire conversation now shifts to where is the spending, where is the savings and where is the balance in the president's so-called balanced approach. as we approach this debt ceiling as you were discussing a moment ago it will get very serious. i think folks are figuring out that the revenue side is not the equation. it's got to be dealt with on the spending side. the president in my view has been completely cavalier on this
7:09 pm
whole question. >> we have had in the last 48 hours one of them on this show, senator ted cruz and cornen and both said to back up the spending cut pledge they would be willing to shut down the government. would you, would the house be willing to shut down the government until you get your spending cuts? >> let me put it this way. i think that there is a fundamental different disposition on that question than there was a year or two ago. a year or two ago, there was not a tolerance for it. but now when you recognize that the president has no interest in cutting spending, the mask is off the white house. there's no pretense that they have an interest in spending and when tim geithner's first offer in the negotiations was $1.6 trillion in new revenue, raise the debt ceiling with impunity and have more stimulus
7:10 pm
spending, that unbridled foolishness that has jarred the gop and the house. so those sort of shutdown questions become easier to coalescing. >> so it's a yes? it's on the table, is that right? >> well, as you and i have talked before, my home state is illinois, which is an example of what not to do. they chose revenues at a state level, didn't deal with the underlying spending drivers and what happened? higher than average unemployment, more per capita debt than any other state in the union almost and been downgraded twice. $7 billion in unpaid bills after the revenues come in. so i'm sensing just in talking to a lot of colleagues today and over the past couple of days a higher level of interest in going much further than they have ever gone before. >> last one, are all revenues off the table as far as you and the house leadership is concerned? >> yeah, that is old news that is now yesterday. and so the president through largely through political
7:11 pm
manipulation and the advantage of a calendar and deadlines was able to get a huge splurge in revenues. now, that should be in terms of honest dialogue, that should be sear satisfied on the revenue side. now it needs to shift to all saving. this is the president's own equation. this is the president's own architecture of at least a 3 to 1 revenue to spending side and he has failed in this miserably. >> all right. peter roskam. appreciate you coming back on. you heard him, no revenues and shut down on the table. >> well, i guess then all tho those -- those business loopholes that are sitting in the tax code are all going to stay in the tax code. >> you mean the holiday -- the $250 million loophole given to hollywood? hollywood which is trashing the american business. >> that's fine, but listen, one of things thatt romney ran on and paul ryan ran on is the fact we needed to clean up the
7:12 pm
corporate side of the tax code and by the way, president has said bring it down to 28%. no one is talking about that what that congressman just said and i respect him very much, he said that the corporate tax reform is off the table now because there are no new revenues that are ever going to be -- >> what is if it's revenue neutral? >> have you ever seen a revenue neutral tax bill? >> absolutely. >> the '86 tax bill was revenue neutral? >> countries cutting the corporate tax rate -- >> which i'm all for. >> they're revenue positive. >> i'm all for it. >> it's growth. >> growth. >> say that again. it's a word we don't hear enough. >> growth. we don't hear enough. we can grow our way at least partially out of the problem we have, but we've got to have the spending cuts to coincide. we have to have entitlement reform. at some point, the president is going to start to think about his legacy. and where he's headed in this next congress is getting almost nothing accomplished. >> well, i disagree with that. >> there's so much division. >> i disagree with that
7:13 pm
wholeheartedly. do i think the president is willing to cut spending? yes i do. >> where's his list? >> he offered his list. he offered it to the republicans in the house. >> no list. he had a number. >> they bumped on it and mitch mcconnell had to save him. >> you currently live in? >> europe, i don't understand why everyone hates europe. the president is more than happy to cut spending. guess what? that's the debate they're going to have. if the governments are out there -- if the republicans are saying they want to shut down government, yesterday, all the way through, let them shut it down. fine with me. >> as the editor-in-chief of a magazine, you heard what roskam say and you tell me what you heard from your standpoint. >> i heard him say that there's still unwilling to mention a single thing they'll ever cut of government. >> specifics. >> specifics. or any -- or a sense, a 5% across the board. anything. will you finally republican
7:14 pm
party actually run and campaign and make an intellectual defense for, because there is a great intellectual defense for this to cut the size of government. it has doubled -- >> what is the intellectual defense? >> it crowds out private spending. we have doubled the size of government in ten years. it's an insane. it drives the economy into the rich. you're fundamentally less free. >> he is right about that. >> you're my kind of -- can i get a subscription to reason magazine? >> it is about time. >> terrific. >> he's right, but here's the challenge. when you're the house republicans, you control one branch of the government. one body of the congress. you're looking at getting shellacked with negative campaign ads if you do that because they're going to not pass the bill democrats. they're not going to allow -- >> why not? >> that's the politics of it. >> i understand. i understand politics, but it would be cool if we saw some
7:15 pm
specifics. >> i think so. >> not in the weeds medicare stuff that takes five years to explain. department by department. agency by agency. you know, the gsa corruption stuff. the country so pissed off at spending and deficits and debt, that if the republicans actually did that i think they'd score huge political points. >> i think you're right. >> i think you're right. we may be at a turning point where boehner can do this. if he decides that he's gonna burrow in and take the shelling and come out the positive side and win this thing. >> give him a combat vest. that's okay. >> that's what this is going to come to. >> i have to go. sarah, matt and jimmy will stay with us for the entire show as far as i'm concerned, but first up, to the stock market. very good week. the dow finished up almost 500 points higher on the week. the economic news, generally pretty good. are we turning a corner here,
7:16 pm
what's all this mean for your money? later in the show, it's a major motion picture coming out tonight. can you believe this? it's called "promised land". it's financed by the united arab emirates, and it takes direct aim at natural gas and oil shale fracking. financed by a middle east oil producer. hollywood, why does hollywood always demonize in big business and capitalism and reason magazine? and if hollywood would stay the hell out of that industry, the boom going on in energy in this country would continue. i'm larry kudlow. we'll be right back. [ male announcer ] how can power consumption in china,
7:17 pm
impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.
7:18 pm
7:19 pm
more proof the economy may be getting better. we had a reasonably solid jobs report today. 155,000 and we had a big gain in factory orders. let's bring in the chief economist and a director at tjm institution services. jim, i want -- i want to start with you. this is a fabulous stock market week. up 497 points. not only that, gold prices are
7:20 pm
falling. i want to get your linkage there. bonds are rising. let's set this up. stocks rising big time. gold falling big time. and bond rates which will probably spread to mortgage interest rates are rising. in brief, what does that mean? >> it means good things. we've got tax cuts that weren't as evil as we thought in the fiscal cliff resolution. we have solid growth in the housing market. we have things going on in china and japan that the market interprets as positive. there is a pretty decent story going on. now, particularly part of that is remember 24 hours ago the market was trading a little bit heavy because it worried about a time in the future and got a glimpse of the fed not providing as much sponsorship as it has. we get to today's numbers and they're reasonably solid by a kind of a bit of dramatization. things are going okay and the fed is still going to be around. stock market looks okay. >> i love it that gold is falling. in the great bull market of the '80s and '90s gold collapsed.
7:21 pm
you had some other stuff. non-farm payrolls up 150,000 something. that's about the same number as we have had for the last 12 months. all right. i like the factory orders which may be coming back the last two months. i want to ask you about this one. the institute for supply managers, the ism services, non-manufacturing looked very strong, brian. are we all -- i don't know who we are, but are people underestimating the strength of this economy? fiscal cliff in washington and burning bushes notwithstanding? >> exactly. and the answer to this question goes back to your previous question too. that is for 3 1/2 years, larry, people have been overly pessimistic. everybody has been waiting for the double dip, the next recession. and these data -- it just keeps -- i think finally the markets are realizing that this buy gold trade because it's the end of the world, buy bonds because it's the end of the
7:22 pm
world trade is the wrong trade. it has been -- >> how high -- how high will long-term -- give me a u.s. treasury ten-year rate has gone from about 140 rick santelli told me this afternoon and it closed where, 190? >> 190, yeah. >> now, how high -- let's assume the economy grows. 2 1/2 to 3, all right? just assume. how high would those bond rates go? >> yeah, our forecast for the end of 2013 is 285. 2.85% on the ten year. but if you look at nominal gdp right now in the last quarter it grew over 5%. the last two years it's over 4% growth. ten-year treasuries should be somewhere around 4 to 5% right now. >> what do you think of that? what do you think of that? 4 or 5%? >> i think that could happen, but if we go to 4% or 5% fairly quickly that's going to mean that we have turned a corner on
7:23 pm
people trusting u.s. debt and they'll start to sell in a hurry. what i challenge brian on more than that, 3 1/2 years i have been the right amount of pessimist. it's a 63.6% participation rate, those are bad numbers. if we go on the current pace of adding jobs we'll be full employment in 2025. >> if the fed -- with the mediocre jobs numbers and 7.8% unemployment, the fed according to their rules, not mine, they'll keep pumping new money in and keep buying bonds. do you surmise that? this is a key point, it shook up the market a little bit this week. will the fed keep pumping money in? >> well, yeah. >> absolutely. >> you know, the minutes came out and basically now there's more -- there's a larger, higher chance right now that the fed stops quantitative easing some time in 2013. the minutes were pretty clear that there's a bigger division in the fed than most people
7:24 pm
thought. and, you know, just to go back to jim's point -- the s&p 500 is at a five-year high and gold really hasn't gone anywhere for 18 months. so this end of the world trade hasn't worked. >> i want that to be true and i want the fed to back away. but i have this feeling that yesterday was somewhat of a trial balloon to see how markets would respond to the fed just kind of talking about it a little bit. >> jim -- >> what is that? >> buying or selling them on monday? >> probably selling on monday. but that's a much shorter term thing. only because it's rally at 5.5%. >> it's an awful question on monday. day to day trading. we like big pictures, centuries. >> i'm big picture. >> thank you very much. the house finally voted on the delayed hurricane sandy relief bill today. we have the results for you and some other news headlines just ahead. please stay with us. [ male announcer ] where do you turn for legal matters?
7:25 pm
at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. get started at legalzoom.com today. ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty.
7:26 pm
and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes. this coffee cup, for example, is computer animated. it's not real. geico's customer satisfaction is quite real though. this computer-animated coffee tastes dreadful. geico. 15 minutes could save you 15 % or more on car insurance. someone get me a latte will ya, please? and you see the woman you fell in love with. she's everything to you. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include
7:27 pm
headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. scrubbing the sandy relief money that story and others, late news breaking in the newsroom. jackie dean yes lis has all the details. >> good evening, larry. speaker boehner promised the first $9.7 billion of sandy relief aid will pass and the senate passed it quickly. the president will sign it so the money can flow to the communities most impacted by the storm. phase two of the bill for longer term relief and reconstruction has been scrubbed of extra earmarks that cleaned up bill
7:28 pm
will be voted on by the house on january 15th. meantime, u.s. troops are getting closer to harm's way with respect to the syrian civil war. the first group of u.s. patriot missilers arrive and they're part of 400 americans who will operate patriot missile to defend from the syrian government planes and the missiles. finally tonight, the center for disease control reporting a big jump in flu cases in the u.s. last week. the flu is now considered widespread in 41 states as hospitalization for the worst cases have increased. and more of u.s. citizens could feel the cough, aches and pain in next few weeks because the spread rate hasn't peaked yet. still not too late to get that flu shot. larry? >> all right, thanks, jackie, we appreciate it. now the anger and rebukes against this al gore story. rising tonight against this controversial sellout to al jazeera. that's right. he sold out to al jazeera. now, one media group is flat out
7:29 pm
calling it network of homeland security threat. that's what a group is calling gore and al jazeera. all is not well with this transaction. and we'll be back with the man making that claim. a homeland security threat. [ male announcer ] count the number of buttons in your car. now count the number of buttons on your tablet. isn't it time the automobile advanced? introducing cue in the all-new cadillac xts. the simplicity of a tablet has come to your car. ♪ the all-new cadillac xts has arrived. and it's bringing the future forward.
7:30 pm
7:31 pm
7:32 pm
welcome back to "the kudlow report." in this half hour, hollywood does it again. the major motion picture starring matt damon, it goes after fracking. it demonizes the gas industry and seeks to create fear at the expense of jobs and no scientific fact whatsoever. we are going to look into this new film called "promised land." but first up this question, is al jazeera a threat to our national security? our next guest says yes. the terror television network is what he calls it and they paid al gore a back door route to the media access. here is cliff kincaid from accuracy in media center. welcome back to the show.
7:33 pm
a terrorist network, that's what you're calling it. >> that's right. this is dirty money. it's not just oil money. it's blood money that they have given to al gore. because we're not going to forget 9/11 and this was the net work that was the voice of osama bin laden. he was responsible for 9/11. i was coming in to washington, d.c. on 9/11. i saw the smoke pouring out of the pentagon. i have been to new york city. i have seen the 9/11 memorial. we won't forget those victims of terrorism. we can't forget the fact that al jazeera was the mouthpiece of osama bin laden and has been working hand in glove with terrorist groups ever since. >> and cliff, let me just ask you this. a lot of things about this obviously that troubles me. but one of them is the whole glenn beck business. a year ago, glenn offered to purchase this failing network, whatever it is, current tv, $250 million. that ain't nothing. gore wouldn't give him the time
7:34 pm
of day. a year later, gore sells it. okay he got 500 million bucks but he didn't know that when glenn beck first offered in. why is al gore going with anti-american, anti-christian, anti-jewish, anti-israeli, anti-everything operation instead of glenn beck? why? glenn beck is a good american. what is motivating gore? >> you have to try to get him on the show, but this is the equivalent during world war ii of turning over american broadcast facilities to tokyo rose. i mean, they were the enemies. and we are still at war with terrorism, islamic terrorism today. we have film footage that we've produced for accuracy in media showing terrorists who were captured in iraq, who killed american soldiers, who said that they came to iraq to kill americans because of al jazeera. this network has american blood on its hands and we call on the
7:35 pm
congress of the united states to investigate this deal before it goes through completely and we're urging congressman michael mccaul, chairman of the house homeland security committee to open hearings into this immediately. >> will they? do you have any evidence that they will open hearings? >> we know that they have been getting a lot of phone calls, we have been generating those today. we know the chairman mccaul is aware of our campaign and what we want to see done. the congress has a role here. where's the oversight of this regime in the middle east qatar which pretends to be a friend of the united states, which supports hamas, which supports hezbollah, giving al gore $100 million in blood money? how can this be allowed to go through? >> and correct me if i'm wrong, but al jazeera is really closely linked to the muslim brotherhood. another terrorist organization, is it not? >> that's right. we actually have the quotes from the muslim brotherhood itself referring to al jazeera
7:36 pm
basically as their mouthpiece, as the great arab media organization. this is an outlet, totally funded by the state of qatar, a jihadist supporting, middle eastern government, which wants to really destroy the united states from within and our fear is that this kind of inflammatory programming could inspire home grown jihadism within our own borders. >> got it. cliff kincaid, we'll talk some more on the radio. back with us now is the panel, jimmy williams, sarah feagin and matt welsh. okay, bad group, al jazeera stand for the wrong thing, al qaeda mouthpiece, osama bin laden mouthpiece. terrorist mouthpiece. but we do have the first amendment in the united states. i want to get your sort of libertarian free market take. >> look around you, television cameras don't kill people. improvised explosive devices kill people.
7:37 pm
this is hysterical on the part of cliff kincaid. i mean, what are we trying to prevent here? we're talking about someone grossly overpaying for a network. maybe one of you had seen it once. i saw it once. >> it's jihadist propaganda? >> no, it's not necessarily jihadist propaganda. they've covered the arab spring more and more interesting -- >> so you're defending it. i'm sorry to take you up, but so interested in your point of view. you're defending this on two grounds. you were in one, first amendment if i'm not mistaken. >> yeah. >> number two is the content. the content. kincaid is pissed off at the content of al jazeera. >> for sure, but i want objectionable content to be able to be broadcast and bought and sold in the united states of america. the land of the free.
7:38 pm
>> sarah feagin, how do you see this? >> fortunately in american unlike the terrorist backers we have a market. i don't think this is going to fly. i don't think people are going to tune in. you see time warner already dropped this. there's fewer households with access than current tv had already and the deal hasn't gone through. and so i think they'll have a hard time being very successful. >> but it's an interesting point. the market point, the consumer market point. will more american muslims -- i'm not saying they're anti-american. they may be pro american muslims, watch al jazeera, maybe for some of the reasons that matt mentioned, that their reporting of the middle east has improved? is this possible? this was a goofy liberal channel, eliot spitzer and that stuff. will more people watch it? >> i think it's possible but at the end of the day if there's content on there that's anti-american, the network is not going to be successful. and in cable operate -- and cable operators are going to drop it. they're in the business to make
7:39 pm
money and they'll put content on that people want to watch. even muslim americans won't want to sit and listen to jihadist rantds. >> jimmy williams, al gore has been accused of being a hypocritic because he's taking all the money from the big oil-producing country. is he being a hypocrite? >> no, he's a free market capitalist. >> i don't have a problem with it. i don't have a problem with him trying to move the transaction into the lower tax rate last year. i agree with that. >> so the point is that this is the free market and this is content. if americans don't like the content they won't watch it and they'll go away. >> it does say something about al gore, that he would spurn glenn beck and now -- >> free market. >> it is the free market, but it says something. i mean, would you sell a piece of property to al jazeera? i mean, wouldn't you think twice about it?
7:40 pm
>> if i didn't want a piece of property, i would sell to the highest bidder and i don't care who it is. >> there's something called ethic. >> no, free market capitalism. >> there are many newspaper accounts, and we invited glenn beck to come on the show, at the time over a year ago, glenn had the highest offer by far. it was $250 million offer as reported. this $500 million offer is off the charts. but i'm just saying he didn't make a capitalist decision, al gore. he made an ideological decision to go with the crazy jihadist instead of the good american. >> he looks at them as more desirable than glenn beck which is troubling. >> al jazeera, he wouldn't even flirt with glenn beck. >> but if you took al gore and al jazeera and glenn beck out of this, we wouldn't be having this discussion. >> yes, we would. >> this is a failure of a tv
7:41 pm
station, but because gore ran it he was able to get sweetheart deals for distribution. that's -- >> i have to jump out. hang on. we'll have you back in a few minutes. we have some more to do. major film that demonizes the u.s. boom in oil, shale and glass fracking it is financed by an arab middle east oil producer. the uae, united arab emirates. why does hollywood always think america is wrong? we'll talk to katie pavlich about that next. this is $100,000.
7:42 pm
we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. ♪
7:43 pm
[ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections
7:44 pm
of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. you sign this lease, it gives us the right to drill on your land. >> a whole lot of money down there. >> there's no reason your town shouldn't have state of the art high school. >> what kind of money are you talking about? >> you could be a millionaire. >> the millionaire. that's a clip from "promised land" starring matt damon. it tackles the controversy over hydraulic fracturing for natural gas. but critics say the money tells only half the story. cnbc's julia boorstin has much more. >> good evening, larry. the big question when "promised
7:45 pm
lands" expands to 1,700 theaters this weekend, how will it impact the fracking? it centers on whether drilling or fracking should be allowed. it has an anti-fracking message, though damon says it intend toss start a conversation about fracking environmental impact. but the industry is concerned enough that the marcellus shale is running commercials in the theaters and it is buying ads on twitter around the corporation. the coalition issued a statement saying quote, this film is purely a work of fiction and is not reflective of the work our industry undertakes. all done with an aggressive and effective regulatory framework. interesting twist, though the film is released by focus features one of the financiers is abu dhabi, an investment fund that's financed "men in back 3"
7:46 pm
and "ghost writer." but it's backed by the oil rich nation of abu dhabi. >> does it strike you as odd that abu dhabi, isn't it sort of odd they fell into this? hollywood hates america. >> well, i have to say though, abu dhabi, this imagination fund of theirs, does fund a really, really wide range of movies and this film is really much more the product of participant which is one of the other producers than abu dhabi. the abu dhabi film fund has a tendency to finance movies without being involved so much in the production. >> thanks, julia boorstin. we appreciate it is. is this more leftist anti-growth and anti-job messaging and ignores a huge boon to the u.s. economy? why does hollywood take sides against america, why does hollywood hate the job-creating
7:47 pm
boom, domestic gas and oil drilling has provided? let's bring in katie pavlich. what's up with hollywood, katie? >> i don't know if we need to get to the bottom of that answer, because we might drive ourselves crazy with that answer. you're right, hollywood has a long habit of bashing america while they promote foreign countries and in this situation matt damon's new film is funded by an oil-rich nation which benefits by the ban of fracking in the united states. oil-rich countries in the middle east stand to make billions in profits if fracking is banned here in america. >> that's the incredible thing to me. i know they're not directing the movie and writing the script. >> right. >> but you know that the uae, abu dhabi they want to damage the american miracle of fracking and oil and gas because we'll be independent of them. that's really at the bottom of this, is it not? they convinced the hollywood
7:48 pm
characters to go along. >> well, it's not only energy independence, but here are some numbers for you. in north dakota the unemployment rate is 1% because of the fracking and natural gas boom there. in new york which has determined that fracking is safe, they have seen that economic output would be $11.4 billion in new york alone with 18,000 jobs and $1.4 billion in new tax revenue. pennsylvania has already seen this boom as well with unemployment going down as a result of fracking. so you have matt damon here making millions of dollars off of his movies, supporting a foreign country that's backed by oil companies. and here we are with lots of people in these areas who want these good fracking jobs. these aren't low-paying jobs. these are well-paid, high-ranking jobs here in america. >> to this point, to that point, bill bennett's column today was great. the title is "damon's film
7:49 pm
promised land overlooks fracking boom to the u.s." we have an economy that hasn't grown in five years under two different presidents. this is the most important economic miracle and hollywood is against it. damon is against it. he's going around the country lobbying against it. >> i think it's important to point out too, that matt damon wanted to make a film that was close enough to the truth that it could be taken as fact. and the fact is that his script had to be rewritten due to a lot of the people in the fracking -- the anti-fracking industry promoting propaganda that isn't true. one instance here is that pushes against all of this is a new film that's actually coming out on monday in new york city called frac nation that goes into the communities and talks to people about what's really going on and whether they like fracking or not. and the truth is that they do. people want fracking in their communities because it causes economic growth, good schools, which is completely opposite of what "promised land" promotes.
7:50 pm
>> katie pavlich, thank you for that update. it's al gore or matt damon, seems like the elites hate america. free market pals will join us to debate that. please stay with us. . with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start.
7:51 pm
our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morn 24 hours. zero heartburn.
7:52 pm
let's bring back our free market panel to react to all of this, jimmy williams, sara fagen and matt welsh. a common theme that seems to be popping up, media elites like al gore and matt damon they seem to
7:53 pm
be taking sides against america. both seem to be siding with oil-rich nations. very curious. matt, let me go to you. lisa jackson who i regard as a left wing administrator of the environmental protection agency, stopping all manner of everything capitalist on energy. she said fracking is perfectly capable of being clean. and there's a study that just was found in new york some secret study that basically said the same thing. >> new york health department. >> where is matt damon and where are the sponsors from the uae, where do they come off from making this? >> five years ago if you asked global warming activists, they would have told you that fracking was all the rage. because it would have a reduced carbon footprint, but that was before we got into the actual producing of thing. it's not a conspiracy with abu dhabi, but there's a liberal distrust of big energy period.
7:54 pm
like nuclear power, because they tend to be messy, invasive and disruptive and they're run by corporations who liberals tend to loathe. >> i think -- right. i think there's a basic mistrust by liberals of capitalism. >> of business. >> and economic freedom. and business, jimmy. i'm going to challenge you. you and your democratic pals do not like the business, capitalist system and this whole fracking revolution which came out of the blue had nothing to to with government planning has been the greatest economic boom in the last five years. liberals hate capitalism. >> except al gore, obviously. i appreciate that, but no, it's not true. >> it's not? >> no, liberals don't hate capitalism. just like conservatives don't hate government. they need it. you have to have something for god's sake. this is is patently absurd that hollywood is buying the industry and influencing billions and billions and millions of americans. i don't care what movie
7:55 pm
hollywood puts out, if it's forrest gump or the help or this. guess what, if it's entertaining i have been entertained. if i'm not, i'm pissed off because i wasted $10 and calories. we're talking about movies. >> will this matt damon attack on oil and gas fracking, will it have any impact? >> i don't think it will. i don't think frankly enough people will go see it and it won't be the rage enough to actually change opinion. the reality is, you know, katie -- your last guest was right. we are seeing huge populations impacted in new york and pennsylvania and north dakota, ohio. they need it. >> new york has had a depression upstate for 50 years, they need it. >> pennsylvania looks great. >> it's jobs. they realize it. >> ohio looks great. dakotas looks fabulous. texas looks great.
7:56 pm
economic boom. one thing that katie pavlich said that's worth noting, the revenues from the expanded work force go into good community development and education and schools. >> i love the conceit of well, we're just making the movie so we can start a conversation. >> right. >> in fact, we have been having this conversation as a country. we have been -- there have been hearings held everywhere. studies done all over the place. just journalism done. the conversation is on going and the conclusion more or less is that, hey, this looks like a pretty good technology. we are putting safeguards on it to make sure we're not poisoning wells. >> people are working. >> the horse is out of the barn on fracking. that's the deal. this movie won't stop it. the keystone pipeline, the liberals, the democrats are trying to stop the keystone pipeline, guess what? that horse is also out of the barn and it's going to go through. >> i think they should do all of the above. i think they ought to put wind farms all through the nantucket sound where i spend every single august. >> there's hope for you yet, jimmy williams. >> and guess what? i don't care if it kills a seagull. i don't care. if it gives me clean energy and
7:57 pm
it gives them gas energy and gives them that, i don't care. >> are you a free market capitalist? >> i like free market. i don't like stupid free market and i think the government should regulate sometimes and shouldn't. >> wow. did you hear that? >> i think you've witnessed the live conversion here. >> do you like baby food with lead in it, let the government not regulate it. whatever. >> this is a live tv burning bush experience. >> i have a dog named moses. >> should government regulate -- >> a hell of a lot less than it does now. a fraction. there are some things it should measure and watch. >> if it ain't broke, don't fix it. why meddle with it? >> but the americans are not buying america. >> they're running out off money. >> they gave it all to al gore. >> we'll put so much oil and gas supply in the market. it will come down. thank you very much. you are all absolutely terrific. that's it for tonight's show.
7:58 pm
thanks for wanting. not even these elites from the media can stop the great american movement towards free market capitalism and prosperity. i'm kudlow. see you monday. [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. and sounds vying for your attention. so we invented a warning
7:59 pm
you can feel. introducing the all-new cadillac xts. available with a patented safety alert seat. when there's danger you might not see, you're warned by a pulse in the seat. it's technology you won't find in a mercedes e-class. the all-new cadillac xts has arrived, and it's bringing the future forward.

tv
The Kudlow Report
CNBC January 4, 2013 7:00pm-8:00pm EST

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

TOPIC FREQUENCY U.s. 11, America 10, Matt Damon 9, Hollywood 9, Glenn Beck 9, Abu Dhabi 8, Boehner 7, Us 7, Jimmy Williams 6, United States 5, New York 5, Geico 4, John Boehner 4, T. Rowe 4, Mitch Mcconnell 4, Paul Ryan 4, Katie Pavlich 4, Pennsylvania 3, Damon 3, Washington 3
Network CNBC
Duration 01:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Virtual Ch. 58 (CNBC)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 528
Pixel height 480


disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 1/5/2013
Views
141